LIBERWAY LIMITED: Liu and Yen Step Down as LiquidatorsLIGHT SOURCE: Tam Chung Ping Steps Down as LiquidatorMAY SUN: Members' Final General Meeting Set for July 31MORODO (HK): Members' Final Meeting Set for July 30RISESOFT LIMITED: Liu and Yen Step Down as Liquidators

SMI ENTERTAINMENT: Liu and Yen Step Down as LiquidatorsSTAR EAST: Liu and Yen Step Down as LiquidatorsSTERNTALER LIMITED: Placed Under Voluntary Wind-Up ProceedingsUNITED KAYU: Members' Final Meeting Set for July 30VICTORY DAY: Commences Wind-Up Proceedings

RILEY PATERSON: Creditors' Proofs of Debt Due July 25RILEY PATERSON INVESTMENT: Creditors' Proofs of Debt Due July 25SINGAPORE DERRICK: Creditors' Proofs of Debt Due July 13SOUTH ASIA: Creditors' Meetings Set for July 11YON-YUE INTERNATIONAL: Creditors' Proofs of Debt Due July 20

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BENDIGO BAKERY: Machinery and Equipment Auctioned Off-----------------------------------------------------Brett Worthington at Bendigo Advertiser reports that peoplepacked into a former Bendigo East bakery on June 27 to buymachinery and ingredients of a liquidated company.

According to the report, auctioneers from the Dominion Groupoffered for sale pie, pastie, sausage roll and cake manufacturingequipment, food transport and other vehicles, a forklift andAUD50,000 worth of ingredients.

Bendigo Advertiser relates that the clearing sale came after acourt ordered Bendigo Bakery Pty Ltd, which traded as GilliesPies, into liquidation in March. About 40 people worked at thebakery when it closed, the report relays.

Auctioneer Ian Burr said most of the items sold at auction,Bendigo Advertiser says.

Liquidator Greg Andrews of GS Andrews and Associates told theBendigo Advertiser earlier last week he had sold the Gillies Piestrademark.

Mr. Andrews had hoped to sell the business but decided earlierthis month, after a health inspection, to close it, the reportadds.

LATIMER TAXIS: Goes Into Liquidation------------------------------------Angus Thompson at Herald Sun reports that up to 200 taxi driversare out of work after Latimer Taxis folded on June 27.

Herald Sun relates that Latimer Taxis went into liquidation onJune 27, pulling about 65 vehicles from the road.

The affirmation of the notes reflects Fitch's view that theavailable credit enhancement is able to support the notes attheir current rating levels. The credit quality and performanceof the loans in the collateral pools remain in line with theagency's expectations.

As at May 31, 2012, all loans within the two pools were coveredby LMI. The mortgage insurance policies were provided by QBELenders Mortgage Insurance Ltd (Insurer Financial StrengthRating: 'AA-'/Stable). There have been no claims for eithertrust since closing.

PPB Advisory's appointment follows concerns raised with the Courtby AET that there is a deficiency in net tangible assetsavailable to meet the claims of debenture holders.

PPB Advisory Partner Marcus Ayres said: "The Court has moved toprotect debenture holders by appointing independent Receivers torun the company and safeguard their interests. The decisioncompletely vindicates the approach taken by AET as trustee. Ourmain priority now is to ensure that all debenture holders aretreated fairly and equally, and that their interests areprotected. Our objective is to maximise the return to debentureholders and resume payments to them as soon as possible.

"PPB Advisory will be conducting an urgent assessment of thebusiness, and will update debenture holders as a matter ofpriority. A meeting will be convened within a month to updatedebenture holders, with details of this meeting to be advised assoon as possible."

Provident Capital Limited -- http://www.providentcapital.com.au/-- is a funds management and investment group offering fixedinterest investments and mortgage lending products. Theseinvestments are secured against a portfolio of non-conformingmortgages secured over Australian residential and commercialproperty. The business has some 3,500 debenture holders who haveinvested in Provident Capital's debenture product.

RED OCHRE: Placed in Administration; Owes More Than AUD1-Mil.-------------------------------------------------------------SmartCompany reports that Red Ochre Homes has collapsed with morethan AUD1 million in debt.

According to the report, the company was placed in administrationon June 18, and placed in receivership the next day. Thebusiness primarily focuses on portable homes, but has a number offixed homes under construction as well.

SmartCompany has learned Red Ochre collapsed with bank debt ofAUD1.5 million, and AUD2.8 million owed to unsecured creditors.There were three employees, working from the company's leasedpremises, with most of the work given out to sub-contractors, thereport notes.

The company turned over AUD11 million in the 12 months to May2012, SmartCompany discloses.

Rob Kirman and Sam Davies of McGrathNicol were appointed asreceivers last month. Mr. Kirman told SmartCompany the firm isattempting to determine if a plan can be made to keep the companygoing forward.

Administrator Michael Basedow was not available for comment,SmartCompany relays.

Red Ochre Homes is an Adelaide-based home construction company.

REED CONSTRUCTIONS: State Works Cause Losses, Administrators Say----------------------------------------------------------------Nicole Hasham at smh.com.au reports that administrators of thestricken builder Reed Constructions have confirmed that lossesfrom state government projects drove the company's demise, assubcontractors owed tens of million of dollars lose hope ofgetting paid.

The report says creditors from across New South Wales gathered ata sombre meeting in central Sydney on June 27 to pore over thecompany's ledgers and lament the financial pain inflicted by thecollapse.

They heard Reed's debt bill was expected to top AUD182 million,including almost AUD79 million owed to 1,400 tradesmen andsubcontractors, and AUD5 million in employee entitlements,according to smh.com.au.

The report notes that the owner of Reed Group, Geoff Reed, hassignalled plans to sue the state government, claiming he is owedAUD60 million for work on major school and road projects.

According to the report, administrator Ryan Eagle of FerrierHodgson confirmed after the meeting that losses Reed sufferedthrough key government contracts "resulted in the company'sfinancial stress and current position." He would not say whetherfault lay with the government or Reed's own performance, butattributed the losses to cost blowouts and "under-calculations,"the report relays.

smh.com.au recalls that the Education Minister, Adrian Piccoli,has previously denied the department is obliged to make furtherpayments to Reed. The Roads and Maritime Services also said itis fully paid up.

Mr. Reed said at the meeting he would consider helping to fund aproposed class action by subcontractors against RMS, the reportrelates.

Mr. Reed later said a deed of company arrangement, rather thanliquidation, would allow Reed to recover money through legalaction. It is understood such a move would likely leavesubcontractors with a minimal return, adds smh.com.au.

About Reed Group

The Reed Group of companies is a privately-owned building, designand construction group, providing construction, design andengineering services across Australia. Reed ConstructionsAustralia Pty Limited has been the main building and constructionentity of the Reed Group. Other businesses within the Reed Groupwill continue to operate as normal.

Reed Constructions Australia Pty Limited has been placed inVoluntary Administration after it suffered losses through some ofits key contracts.

Administrator John Melluish said he will be undertaking an urgentassessment of the financial position of the company and that afirst meeting of creditors will be held on June 27, 2012.

SHINE GROUP: Collapse Due to Failed Retail Expansion----------------------------------------------------SmartCompany reports that KPMG was appointed as administrator ofShine Group on Monday after the design and brand house collapsedthis week.

Administrator Damian Templeton of KPMG told SmartCompany he wasconducting an "urgent assessment" of the company's financialsituation.

SmarCompany relates that while Mr. Templeton said it is still"early days" in the administration, he attributed Shine Group'sfailure to its expansion into retail and the United States.

"They have had some trading losses in the last financial yearplus they have had an expansion into retail which was not assuccessful as they would have liked and expansion into the US,"SmartCompany quotes Mr. Templeton as saying. "The cost of all ofthat has put pressure on the underlying business."

For the time being KPMG will continue to trade Shine Group'sonline and bricks and mortar stores but Mr. Templeton isassessing this, SmartCompany relates.

A creditors meeting is scheduled for July 12, the report notes.

Shine Group is a Melbourne-based design & brand house. Thegroup's three brands included the SunnyLIFE home wares brand theJethro & Jackson fashion label and the BODY fashion label.

Joel Bartfeld, a former nominee for the Ernst & Young YoungEntrepreneur of the Year, is listed as the founder and creativedirector of the group, which has a turnover of less thanAUD10 million and employs 25 staff, according to SmartCompany.

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CHINA HYDROELECTRIC: Reports $785,000 Net Income in Q1 2012-----------------------------------------------------------China Hydroelectric Corporation announced on June 14, 2012, itsfinancial results for the three months ended March 31, 2012.

"Net income attributable to China Hydroelectric Corporationshareholders and ordinary shareholders was $785,000 in the firstquarter of 2012, compared to net loss of $5.6 million in the sameperiod in 2011 principally due to gain from sale of Yuanping andmore favorable hydrological factors," the Company said in thepress release.

"Revenues, net of value added taxes, from continuing operationsfor the three months ended March 31, 2012, were $22.5 million, anincrease of 105%, or $11.5 million, from $11.0 million for thethree months ended March 31, 2011. This increase was dueprincipally to better than average hydrological conditions inZhejiang and Fujian provinces in the current quarter compared tothe prior year quarter and a higher effective tariff rate due tothe mix of revenue from the respective provinces."

Mr. John D. Kuhns, Chairman and Chief Executive Officer, said,"The Company's consolidated net revenue, gross profit, operatingincome and EBITDA for the first quarter of 2012, each of whichrepresent record amounts, were positively impacted by aboveaverage precipitation experienced in the two eastern provinces ofFujian and Zhejiang. This is in stark contrast to our financialresults for the first quarter of 2011 when precipitation in allfour provinces where we have power projects fell well belowhistorical average levels. Since year-to-year variations inhydrological conditions are a fundamental part of thehydroelectric power generation business, it is important to keephistorical averages in mind when assessing our results ofoperations."

The Company's balance sheet at March 31, 2012, showed$807.7 million in total assets, $412.5 million in totalliabilities, and stockholders' equity of $395.2 million.

Ernst & Young Hua Ming, in Beijing, People's Republic of China,expressed substantial doubt about China Hydroelectric's abilityto continue as a going concern, following the Company's resultsfor the fiscal year ended Dec. 31, 20112. The independentauditors noted that the Company has a net working capitaldeficiency which raises substantial doubt about its ability tocontinue as a going concern.

About China Hydroelectric

China Hydroelectric Corporation (NYSE: CHC, CHCWS) is an ownerand operator of small hydroelectric power projects in thePeople's Republic of China. Through its geographically diverseportfolio of operating assets, the Company generates and sellselectric power to local power grids.

The Company currently owns 26 operating hydropower stations inChina with total installed capacity of 547.8 MW, of which itacquired 22 operating stations and constructed four. Thesehydroelectric power projects are located in four provinces:Zhejiang, Fujian, Yunnan and Sichuan.

CHINA TEL GROUP: To Issue 49.9 Million Shares to Contractors------------------------------------------------------------VelaTel Global Communications, Inc., formerly known as ChinaTel Group Inc., filed with the U.S. Securities and ExchangeCommission a Form S-8 registering 49,908,203 shares ofcommon stock issuable to independent contractors. The proposedmaximum offering price is $573,944. A copy of the filing isavailable for free at http://is.gd/WiPqZb

About China Tel

Based in San Diego, California, and Shenzhen, China, China TelGroup, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunicationsinfrastructure engineering and construction services. Throughits controlled subsidiaries, the Company provides fixedtelephony, conventional long distance, high-speed wirelessbroadband and telecommunications infrastructure engineering andconstruction services. ChinaTel is presently building, operatingand deploying networks in Asia and South America: a 3.5GHzwireless broadband system in 29 cities across the People'sRepublic of China with and for CECT-Chinacomm Communications Co.,Ltd., a PRC company that holds a license to build the high speedwireless broadband system; and a 2.5GHz wireless broadband systemin cities across Peru with and for Perusat, S.A., a Peruviancompany that holds a license to build high speed wirelessbroadband systems.

After auditing the 2011 results, Kabani & Company, Inc., in LosAngeles, California, expressed substantial doubt as to theCompany's ability to continue as a going concern. Theindependentauditors noted that the Company has incurred a net loss for theyear ended Dec. 31, 2011, cumulative losses of $254 million sinceinception, a negative working capital of $16.4 million and astockholders' deficiency of $9.93 million.

The Company reported a net loss of $21.79 million in 2011,compared with a net loss of $66.62 million in 2010.

The Company's balance sheet at March 31, 2012, showed$13.57 million in total assets, $19.53 million in totalliabilities and a $5.95 million total stockholders' deficiency.

"At the same time, we lowered the issue rating on the company'ssenior unsecured notes to 'B-' from 'B'. We also lowered ourlong-term Greater China credit scale ratings on Renhe and on itssenior unsecured notes to 'cnB-' from 'cnBB-'. We removed all theratings from CreditWatch, where they were placed with negativeimplications on March 29, 2012," S&P said.

"We lowered the ratings to reflect our view that Renhe'sliquidity has deteriorated to "weak" from "less than adequate",as defined in our criteria," said Standard & Poor's creditanalyst Frank Lu.

"We expect the company's liquidity sources to cover about 0.8x ofits liquidity uses in 2012, compared with our assessment of 1.0xcoverage three months ago. We believe Renhe's property sales willlikely remain depressed and its receivables collection could bematerially lower than our expectation over the next six to 12months" Mr. Lu said.

"Renhe's cash balance could deplete quickly if its sales andreceivables collection remain weak. This is because the companyhas large construction payables, and sizable debt interest andprincipal repayment and operating expenses. Renhe's propertysales have been weak and the collection of outstandingreceivables since early this year has been lower than weexpected," Mr. Lu said.

Despite a collection of RMB870 million receivables in the quarterended March 31, 2012, related to Renhe's Chengdu project sale,the company still has about RMB1.5 billion outstandingreceivables overdue since late last year.

"We believe that Renhe's business model is vulnerable to thecompany's limited access to bank financing," said Mr. Lu. "Thecompany doesn't hold land use rights on the undergroundcommercial properties it develops. These rights are typicallyrequired for collateral by banks, which refrain from lendingagainst properties without collateral. Renhe's propertypurchasers also face difficulties in borrowing from banks due totight credit conditions and a lack of property titles."

The negative outlook reflects our expectation that Renhe'sliquidity will likely deteriorate in the next 12 months. This isdue to the company's weak property sales and receivablescollection, which show limited signs of a turnaround despite someeasing in credit conditions.

"We may lower the rating if Renhe's liquidity deteriorates fasterthan we expect. This could be due to weaker property sales andreceivables collection than we estimate or higher capitalexpenditure than we anticipate over the next six to 12 months. Adrop in the cash balance to less than RMB1.0 billion couldindicate such deterioration. We may revise the outlook to stableif Renhe's liquidity improves due to: (1) better property salesand receivables collection than we expect; and (2) asset salesand funding from external parties, including capital injections,"Mr. Lu said.

Property sales of over RMB2.0 billion in 2012 and liquiditysources covering liquidity uses by about 1.0x for the next 12months could indicate such an improvement.

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EXCELLENCE CONSULTANTS: Watt Hung Chow Steps Down as Liquidator---------------------------------------------------------------Watt Hung Chow stepped down as liquidator of ExcellenceConsultants Limited on June 27, 2012.

GI PLUS: Placed Under Voluntary Wind-Up Proceedings---------------------------------------------------At an extraordinary general meeting held on June 19, 2012,creditors of GI Plus Space Limited resolved to voluntarily windup the company's operations.

At the meeting, Chan Mi Har and Ying Hing Chiu, the company'sliquidators, will give a report on the company's wind-upproceedings and property disposal.

GREAT CHINA MANIA: Posts $20,100 Net Loss in Q1 2012----------------------------------------------------Great China Mania Holdings, Inc., filed its quarterly report onForm 10-Q, reporting a net loss of $20,094 on $1,454,156 ofrevenues for the three months ended March 31, 2012, compared withnet income of $873,976 on $878,853 of revenues for the sameperiod of 2011.

The Company's balance sheet at March 31, 2012, showed $1,498,535in total assets, $1,389,333 in total liabilities, andstockholders' equity of $109,202.

Madsen & Associates CPA's, Inc., in Salt Lake City, Utah,expressed substantial doubt about Great China Mania's ability tocontinue as a going concern, following the Company's results forthe fiscal year ended Dec. 31, 2011. The independent auditorsnoted that the Company does not have the necessary workingcapital to service its debt and for its planned activity.

The Company also amended its annual report for the fiscal yearended Dec. 31, 2010, to file corrected financial data. Thefinancial statements and notes in the Form 10-K for the yearended Dec. 31, 2010 (filed April 15, 2011) inadvertentlycontained erroneous financial information.

The Company has restated certain amounts of the consolidatedfinancial statements to reflect the loss on disposal of GEBD BVI.Additional paid-in capital and accumulated deficit as of Dec. 31,2010 increased by $5,223,073, respectively. The net results fromdiscontinued operations for the year ended Dec. 31, 2010,decreased by $5,223,073. Also, the net income and comprehensiveincome for the year ended Dec. 31, 2010 increased by $5,223,073,respectively. There is no change in net assets as of Dec. 31,2010.

JUSTICE DEVELOPMENT: Commences Wind-Up Proceedings--------------------------------------------------Members of Justice Development Company Limited, on June 29, 2012,passed a resolution to voluntarily wind up the company'soperations.

LIBERWAY LIMITED: Liu and Yen Step Down as Liquidators------------------------------------------------------Stephen Liu Yiu Keung and David Yen Ching Wai stepped down asliquidators of Liberway Limited on June 20, 2012.

MAY SUN: Members' Final General Meeting Set for July 31-------------------------------------------------------Members of May Sun Chan Company Limited will hold their finalgeneral meeting on July 31, 2012, at Room 2308, 23rd Floor,Fortis Tower, at 77-79 Gloucester Road, Wanchai, in Hong Kong.

At the meeting, Wong Kwok Hong, the company's liquidator, willgive a report on the company's wind-up proceedings and propertydisposal.

MORODO (HK): Members' Final Meeting Set for July 30---------------------------------------------------Members of Morodo (Hong Kong) Limited will hold their finalmeeting on July 30, 2012, at 10:00 a.m., at 3/F, Dah Sing LifeBuilding, at 99-105 Des Voeux Road Central, in Hong Kong.

At the meeting, Wong Ming Lai, the company's liquidator, willgive a report on the company's wind-up proceedings and propertydisposal.

RISESOFT LIMITED: Liu and Yen Step Down as Liquidators------------------------------------------------------Stephen Liu Yiu Keung and David Yen Ching Wai stepped down asliquidators of Risesoft Limited on June 20, 2012.

SMI ENTERTAINMENT: Liu and Yen Step Down as Liquidators-------------------------------------------------------Stephen Liu Yiu Keung and David Yen Ching Wai stepped down asliquidators of SMI Entertainment Limited on June 20, 2012.

STAR EAST: Liu and Yen Step Down as Liquidators-----------------------------------------------Stephen Liu Yiu Keung and David Yen Ching Wai stepped down asliquidators of Star East IT Management Limited on June 20, 2012.

STERNTALER LIMITED: Placed Under Voluntary Wind-Up Proceedings--------------------------------------------------------------At an extraordinary general meeting held on June 29, 2012,creditors of Sterntaler Limited resolved to voluntarily wind upthe company's operations.

The company's liquidator is:

Koch Thomas Hermann Lorenzstrasse I Diez, Germany

UNITED KAYU: Members' Final Meeting Set for July 30---------------------------------------------------Members of United Kayu Agencies Limited will hold their finalmeeting on July 30, 2012, at 11:00 a.m., at 7th Floor, AlexandraHouse, at 18 Chater Road, Central, in Hong Kong.

At the meeting, Philip Brendan Gilligan, the company'sliquidator, will give a report on the company's wind-upproceedings and property disposal.

VICTORY DAY: Commences Wind-Up Proceedings------------------------------------------Members of Victory Day Investment Limited, on June 28, 2012,passed a resolution to voluntarily wind up the company'soperations.

ADTCPL also has a small scale of operations, and is exposed tointense competition from Chinese manufacturers; it also has aweak financial risk profile. The company, however, benefits fromits promoters' extensive experience in the cutting toolsmanufacturing business.

ADTCPL was incorporated on July 16, 1981. The company specialisesin manufacturing consumables for the stone cutting toolsindustry. It also trades in glass products. The company ispromoted by Mr. Kishore Kamat and Mrs. Chayya Kamat.

DERBY PLANTATIONS: CRISIL Reaffirms 'D' Rating on INR52MM Loans---------------------------------------------------------------CRISIL's ratings to the bank facilities of Derby PlantationsPrivate Limited (part of the Mantri group) continues to reflectinstances of delay by the Mantri group in servicing its debt; thedelays have been caused by the group's weak liquidity due to theworking capital intensity of operations.

The Mantri group is exposed to risks related to seasonality intea production and high operating leverage. Moreover, the grouphas limited bargaining power and its operating margin issusceptible to volatility in domestic and international teaprices. These weaknesses are partially offset by the experienceof the Mantri group's promoters in the tea industry.

For arriving at its ratings, CRISIL has combined the business andfinancial risk profiles of MTCPL, Ruttonpore Plantations Pvt Ltd,Derby Plantations Pvt Ltd, and Manipur Tea Company Pvt Ltd,together referred to as the Mantri group. This is because theentities have common management, are in the same line of businessand have cross guarantees with each other.

The Mantri group was formed in 1948 by Mr. Govind Prasad Mantri.The Manipur Tea Estate, located in Assam, was the group's firstacquisition, in 1954. Subsequently, the group acquired anotherthree tea gardens in Assam: Ruttonpore Tea Estate in 1986, DerbyTea Estate in 2005, and Pathini Tea Estate (Mantri) in 2006.Currently, the second- and third-generation promoters, along witha professional management team, are actively involved in businessoperations.

The Mantri group reported a net loss of INR13.34 million on netsales of INR325.96 million for 2011-12 (refers to financial year,April 1 to March 31), as against a net loss of INR5.81 million onnet sales of INR352 million for 2010-11.

The rating assigned to the bank facilities of Gajanand Ginningand Pressing Pvt. Ltd. (GGPL) is primarily constrained on accountof its weak financial risk profile marked by thin profitability,highly leveraged capital structure due to working capitalintensive nature of operations and stressed debt coverageindicators. The ratings are further constrained on account of lowvalue addition in the agro-processing activity, vulnerability togovernment regulations and presence in a fragmented cottonindustry limiting profitability margins.

The abovementioned constraints are partially offset by strengthsderived from experience of the promoters in the cotton industryand favorable location of GGPL providing easy access to rawmaterials.

Ability of GGPL to manage volatility associated with cottonprices and improvement in overall financial risk profile is thekey rating sensitivity.

Total installed capacity of GGPL is 15,300 metric tonnes perannum (MTPA) of cotton bales. GGPL sells its product throughbrokers, agents & distributors. GGPL also exports its products tocountries like China, Pakistan & Turkey although in very lowquantity. Raw cotton (Shankar-6) which is the major raw materialis procured directly from local farmers in Gujarat.

During FY11 (refers to the period April 1 to March 31), GGPLreported PAT of INR0.11 crore on a total operating income ofINR64.69 crore.

GODWIN AGRO: Delay in Loan Payment Cues CRISIL Junk Ratings-----------------------------------------------------------CRISIL has downgraded its rating on the long-term bank facilitiesof Godwin Agro Products Ltd to 'CRISIL D' from 'CRISIL B+/Stable.The rating downgrade reflects instances of delay by GAPL inservicing its term loan; the delays have been caused by thecompany's weak liquidity.

GAPL also has a weak financial profile, marked by deteriorationin its net worth, high gearing, and weak debt protection metrics.The rating also factors in the pressure on the company'sliquidity due to its short track record and start-up nature ofoperations in the cold storage industry. These rating weaknessesare partially offset by the benefits that GAPL derives from thecontinuous support that it receives from government bodiesthrough various incentives and schemes.

Incorporated in 1994, GAPL is a public limited company promotedby Mr. Ajit Jain, Mr. Akaash Jain, and Ms. Ritu Jain. The companyset up a cold chain for fruits and vegetables with an annualcapacity of 3000 tonnes in Mohali (Punjab). The company uses thecontrolled atmosphere technology, and built 20 chambers for thispurpose. GAPL undertakes end-to-end services in the agriculturalprocurement, storage, and supply chain business. GAPL also storesfruits and vegetables in its cold storage on commission basis.

GOALTORE COLD: Delays in Loan Payment Cues CRISIL Junk Ratings--------------------------------------------------------------CRISIL has assigned its 'CRISIL D' rating to the long-term bankfacilities of Goaltore Cold Storage Private Limited. The ratingsreflect instances of delay by GCSPL in servicing its debt withinthe due date; the delays have been caused by the company's weakliquidity profile.

GCSPL also has weak financial risk profile, marked by small networth, high gearing, and weak debt protection metrics andexposure to the highly regulated and fragmented cold storageindustry in West Bengal (WB). These weaknesses are partiallyoffset by the extensive experience of GSCPL's promoter's in thecold storage and potato trading business.

About Goaltore Cold

Goaltore Cold Storage Private Limited was set up as a partnershipfirm in 1993, and was later reconstituted as a private limitedcompany in 1997. GSCPL is promoted Mr. Tapan Kumar alongwith hisfamily members. The company operates a cold storage unit(primarily for storing potatoes) in Paschim, Medinipur district(West Bengal). The cold storage unit has a capacity of 20335.5tonnes, with over 95 percent utilisation in 2011-12. The companyalso provides funding to farmers against the potatoes stored,which is in turn re-financed by the banks. GSCPL charges rent ofabout INR120 per quintal per season from the farmers and the sameis collected as and when the farmers get the potatoes releasedfrom the cold storage unit. GCSPL also, at times, undertakestrading in potatoes to ensure optimum capacity utilisation of itscold storage unit.

GCSPL reported profit after tax (PAT) of INR0.13 million on salesof INR16.7 million for FY 2010-11, as against a marginal loss ofINR1.32 million on net sales of INR11.6 million for 2009-10.

The downgrade reflects instances of delay by ILC in servicing itsdebt; the delays have been caused by weakening in the company'sliquidity. Liquidity weakened because of delays in projectcompletion and decline in iron-ore trading activities, leading todepressed cash accruals.

ILC's financial risk profile is under pressure also because ofits large working capital requirements. The company is faced withstabilisation-related risks associated with its recentlycompleted integrated steel plant, and with the challenge ofmaintaining its revenues and profitability against the backdropof increasing regulatory interventions. However, the companybenefits from the healthy demand outlook for the iron oreindustry, promoters' extensive experience in the iron ore tradingindustry, and established customer relationships.

About ILC Industries

ILC Industries was established in 2000 by Mr. K Somasekhar, whohas been associated with logistics and mining activities sinceearly 1993. ILC manufactures sponge iron and is currently in theprocess of setting up a captive power plant. The companyprimarily used to trade in iron ore until the ban on iron oreexports in Karnataka. The company is also into generating windpower, rice milling, edible oil refining and trading inagricultural commodities such as rice and maize - these otherbusinesses collectively generate less than 20 per cent of thecompany's operating revenues.

ILC's net loss after tax and net sales are estimated at INR49million and INR757 million respectively for 2011-12 (refers tofinancial year, April 1 to March 31); it reported a PAT of INR102million on net sales of INR4.98 billion for 2010-11.

The ratings are primarily constrained on account of financialrisk profile of Kamakhya Shivalik Enterprises Pvt. Ltd. (KSEPL)marked by thin profit margins, leveraged capital structure andweak debt protection indicators. The ratings are furtherconstrained by working capital intensive nature of businessoperations, limited bargaining power vis-a-vis the principaltractor manufacturer and dependency of tractor demand onagriculture output as well as availability of credit.

These constraints far outweigh the benefits derived from thepromoters' experience in the tractor industry, authorizeddistributorship of Escorts, Eicher and Swaraj tractors andfavorable demand outlook for tractors in the medium term.KSEPL's ability to increase its scale of operations, efficientmanagement of working capital and thereby improving itsprofitability margin and capital structure are the key ratingsensitivities.

Incorporated in February 2004, KSEPL is a private limited companypromoted by Mr. Vikram Agarwal. KSEPL is the authorizeddistributor for tractors of Eicher Motors Ltd., Escorts Ltd. andSwaraj Enterprise; division of Mahindra and Mahindra Ltd..KSEPL's distribution network includes 50 dealers spread acrossRajasthan. For Eicher and Swaraj, KSEPL is an exclusivedistributor of tractors in the Rajasthan region.

As against a net profit of INR0.11 crore on a total operatingincome of INR37.60 crore in FY10 (FY refers to the period fromApril 1 to March 31), KSEPL reported a net profit of INR0.14crore on a total operating income of INR44.90 crore during FY11.

As per provisional results of FY12, KSEPL achieved a turnover ofINR62.94 crore and a PAT of INR0.21 crore.

The revision in the ratings is on account of cost escalation inthe hotel project, expansion of the water theme park project,delay in financial closure leading to stretched liquidityposition of the company and sharp decline in profitability duringFY11 (refers to the period April 1 to March 31).

The ratings continue to be underpinned by the experience andstrength of the promoters, unique nature of the integratedtourism project, satisfactory operational parameters and moderateoverall gearing. The ability of the company to achieve thefinancial closure for the additional cost of projects, timelycompletion of project without any further cost overrun andimprove the profitability and liquidity position of the companyare the key rating sensitivities

The ratings are constrained by relatively small scale ofoperations, below-average financial risk profile marked by lowprofitability margins, low coverage indicators and the workingcapital intensive nature of business operations. The ratings alsotake into account raw material price volatility and competitivenature of the industry.

The ratings however derive strength from the experience of thepromoters with long track record of operations, moderatefinancial leverage and locational advantage of its manufacturingfacilities and an established marketing setup.

MDC Pharmaceuticals Private Limited was incorporated on July 14,1994 as a private limited company by Mr Parvinder Singh Gulati,Mr. Sham Lal Singla and Mr. Gurmeet Singh Narula. Initially thecompany was involved in distribution of pharmaceuticalformulations under its own brands. In 2000 the company installedits own plant in Solan (Himachal Pradesh) for manufacturingpharma products. Thereafter, another plant was established inBaddi (Himachal Pradesh) in 2004.

The company is presently engaged in manufacturing and export ofvarious pharmaceutical formulations in the form of tablets,capsules and liquid orals. The total installed capacity of thecompany on single-shift basis is 5.7 lac pcs per day (tablets), 2lac pcs per day (capsules) and around 0.64 lac pcs per day(bottles/syrups).

During FY11 (refers to the period from April 1 to March 31), MDCregistered a PBILDT and PAT of INR3.42 cr and INR0.76 cr on atotal operating income of INR30.59 cr. Furthermore, as per theprovisional results for FY12, it has reported net sales ofINR27.62 cr with a PBILDT and a PAT of INR3.06 cr and INR0.18 crrespectively.

The rating assigned to the bank facilities of N. L. EngineersPvt. Ltd. is primarily constrained by its small scale ofoperations, raw material price volatility risk, weakeningfinancial risk profile, working capital intensive nature ofbusiness and presence in a highly competitive and fragmentedmarket. The aforesaid constraints are partially offset by therich experience of the promoters and diversified geographicalpresence along with reputed client base.

Going forward, NLEPL's ability to receive steady flow of ordersand execution of the same, expansion in its scale of operationsand improvement in its financial risk profile are the key ratingsensitivities.

NLEPL, incorporated in 1997, was promoted by Shri Vijay KantAggarwal based at Chandigarh and is engaged in manufacturing oftransmission galvanised steel towers and different type ofstructural steel fabrication used primarily in thetelecommunication and power distribution sector. Themanufacturing facility of the company is located at Mohali(Punjab), having an installed capacity of 18,000 metric tonnesper annum (MTPA) for fabrication and galvanisation works.

NLEPL's board comprises of four board members, all representingthe promoter's family. The day-to-day affairs of the company arelooked after by Shri Vijay Kant Agarwal, Director.

During FY11 (refers to the period from April 1 to March 31), thecompany reported PBILDT of INR2.5 crore (FY10:INR2.7 crore) andPAT of INR0.3 crore (FY10:INR0.5 crore) on total operatingincome of INR30.6 crore (FY10:INR36.8 crore).

The ratings take into account the delay in debt servicing by PSPLowing to its weak liquidity position.

Print Shop Private Limited, a private limited company was set upin 1989 in Chennai. Mr. V.Parameswaran, Promoter-cum-Chairman hasover three decades of experience having worked forJWT (James Walter Thompson), an advertising agency. Mr VBS Mony,Managing Director has around two decades of experience in theprinting business.

The company undertakes printing activities across Pre-press,Printing, and Post-press functions. PSPL since inception,focused mainly in commercial offset printing catering to areputed client base which includes large corporate customers.Since 2008, PSPL has also diversified into printing ofeducational books for leading publishing houses.

PSPL reported a profit after tax (PAT) of INR0.8 cr on net salesof INR36.2 cr for 2010-11 (refers to financial year, April 1 toMarch 31), against a provisional PAT of INR1.1 cr on net sales ofINR35.6 cr for 2011-12.

The ratings assigned to the bank facilities of Revati TexwinkaPrivate Limited are constrained mainly on account of its smallscale of operations in a highly competitive and fragmentedsynthetic fabric industry and its limited presence in textilevalue chain resulting in thin profitability margins. The ratingsare further constrained on account of its leveraged capitalstructure and stressed liquidity position coupled with thesusceptibility of profit margins to volatile raw material prices.

The ratings, however, favorably take into account the wideexperience of the promoters in the synthetic fabrics industry,RTPL's established distribution network and its presence in thetextile cluster of Bhilwara (Rajasthan).

Increase in scale of operations and improvement in the overallfinancial risk profile with effective management of the workingcapital in light of volatile raw material prices and intenseindustry competition remains the key rating sensitivity.

Incorporated in 2003, RTPL is a private limited company promotedby the Dad family based out of Bhilwara (Rajasthan). RTPL isengaged in manufacturing of grey fabric and synthetic suitingshirting fabric at its two manufacturing units located atBhilwara which have an aggregate capacity of 72 looms as on April30, 2012. The company recently commissioned 8 new looms in April2012.

As against a net profit of INR0.12 crore on a total income ofINR9.45 crore in FY10 (refers to the period April 1 to March 31),ATPL earned a PAT of INR0.13 crore on a total operating income ofINR0.13 crore during FY11. As per the provisional results, thecompany has achieved a total income of INR14.76 crore duringFY12.

The revision in the ratings of Shree Rajasthan Syntex Limited ison account of deterioration in its debt coverage indicators dueto cash losses incurred by it during FY12 (refers to the periodfrom April 1 to March 31) along with deterioration in itsleverage.

The ratings continue to be constrained by volatile raw materialprices coupled with low bargaining power with suppliers, workingcapital intensive operations and inherent cyclicality associatedwith the textile industry.

The above weaknesses are, however, partially offset by thepromoter's long standing track record in the textile industry andestablished operations of SRSL in the blended yarn segment.Ability of SRSL to pass on the price fluctuations to the endusers and significant improvement in its capital structure anddebt protection indicators are the key rating sensitivities.

Incorporated in 1979, SRSL is engaged in the production ofsynthetic (grey as well as dyed) blended, cotton andPolypropylene Multifilament (PPMF) yarn. The company manufacturesyarn in the range of 18-30 counts. SRSL currently has 67,584spindles for synthetic blended yarn, 14,520 spindles for cottonyarn and 3,600 MTPA production capacity of PPMF yarn. Itsmanufacturing facilities for synthetic-blended and cotton yarnare located at Dungarpur (Rajasthan) while PPMF yarn facilitiesare at BagruRavan, Jaipur (Rajasthan). Presently, SRSL is in theprocess of shifting its PPMF plant to Dungarpur which is expectedto be completed by September 2012.

The ratings reflect SKWL's consistently high financial leverageand low interest coverage due to its continued high workingcapital requirements. Provisional results for FY12 (year endMarch) indicate total financial leverage (total adjusteddebt/operating EBITDAR) of 6.5x (FY11: 6.7x), interest coverage(operating EBITDAR/ gross interest expense) of 1.4x (1.2x), andEBITDA margins of 7.7% (7.6%). Fitch notes that the decline ininventory days of 104 (132) was counteracted by an equivalentdecline in creditor days of 8 (30).

The ratings also reflect the 44.6% yoy growth in revenue toINR1,682.6m in FY12, driven the 33% yoy volume growth in the fourwheeler segment. The ratings continue to be supported by SKWL'sestablished market position in the sale of Maruti cars in westernIndia and almost a decade-long experience of its founders in theautomobile dealership industry. Fitch expects that benefits fromSKWL's new dealership showroom in Bhiwandi (Mumbai), completed ata total cost of INR180.5m in FY12, to start accruing from FY13.

Positive rating guidelines include an improvement EBIDTA marginsand/or working capital cycle leading to financial leverage below5.0x and interest coverage ratio above 1.5x on a sustained basis.Conversely, a decline of EBITDA margins and a continuedstretching in working capital cycle resulting in financialleverage above 7.5x and interest coverage below 1.1x on asustained basis could result in negative rating action.

SKWL is a dealer for Maruti Suzuki India Ltd in Mumbai, Thane andRaigarh. It also provides after-sales services, relatedaccessories and financial services for the selling and purchaseof cars.

The ratings assigned to the bank facilities of SpectraConstructions Pvt. Ltd. are primarily constrained on account ofimplementation risk associated with its ongoing and proposedlarge-sized real estate projects which are geographicallyconcentrated, yet to be achieved financial closure for all theprojects, competition from other real estate players in theregion and cyclical nature of the real estate sector.

The above constraints are partially offset by experience ofpromoters and long track record of the company, successfulexecution of projects in the past and moderate booking status ofits ongoing projects. The ratings are further supported byrequisite approvals being in place for all the projects.

Timely completion of its ongoing projects without any time andcost overrun and ability to sell the space in a highlycompetitive scenario at envisaged prices are the key ratingsensitivities. Further, higher than expected debt levels for itsongoing and proposed projects would also remain a key ratingsensitivity.

Spectra Constructions Private Limited was incorporated in theyear 1999 and is promoted by Mr. C. Chandrasekhar and Mrs.Manjula C Raju. Since its inception, the company has been engagedin construction and development of commercial and residentialreal estate projects in Bangalore.

SCPL has completed eight commercial and residential projects tilldate and is currently implementing three new projects which areexpected to be completed in 2012-2015. It has three more projectsin the pipeline which are expected to start and complete duringthe period spanning 2014-2016.

During FY11 (refers to the period April 1 to March 31), SCPLreported a total operating income of INR16.59 crore and a PAT ofINR0.80 crore and achieved PAT of INR2.10 crore on totaloperating income of INR22.85 crore in FY12.

The ratings are based solely on the unconditional, irrevocableand absolute corporate guarantee provided by Sri KaliswariFireworks Private Limited (SKFPL, a group company) towardsSKMPPL's bank loans. Fitch expects the latter to continuereceiving financial support from group entities due to itscontinued tight liquidity position. This is illustrated by itsweak financial profile and working capital utilisation averaging92% during FY12 (year end March).

The ratings also reflect SKFPL's strong position in the domesticfireworks industry and its moderate financial profile.Provisional and unaudited financial results for FY12 indicaterevenue EBIDTA margin of 16.2% (21.8%) and adjusted grossdebt/EBIDTA of 1.4x (2.4x).

Any change in SKFPL's credit profile will lead to a correspondingchange in SKMPPL's ratings.

SKMPPL is a part of the Sri Kaliswari Group established by Mr. C.Shunmuganathan in 1989. The company is engaged in themanufacture and export of aluminium powder and aluminium paste.SKMPPL's provisional and unaudited financial results for FY12(year end March) indicate revenue of INR350m (FY11: INR255.2m),EBITDA of INR14.5m (INR13.6m), EBITDA margin of 4.1% (5.4%) andadjusted gross debt/EBITDA of 14.28x (18.79x). The companyincurred a net loss of INR4m in FY12.

The rating revision factors in the increased reliance onrefinance due to debt funded investments in subsidiaries whichare likely to take time to start generating returns, project riskassociated with backward integration project, poor power supplysituation and non-availability of raw material on continuousbasis affecting capacity utilization levels of SIL. The ratingscontinue to be constrained by high level of leverage, commoditynature of its products, raw material price risk and lack of long-term sourcing arrangement for its major raw materials. Theratings continue to factor in experience of the promoters insteel trading, well-established operations of the Gummidipoondiunit and integrated nature of operations at Raichur.

Ability of the company to achieve higher capacity utilisation atits production facilities in view of poor power supply situationand non-availability of raw material on continuous basis andtimely implementation of backward integration project withoutcost overrun are key rating sensitivities.

SIL is into manufacture and sale of TMT bars and trading of MSStructurals. SIL was promoted by Mr. G.R.Surana, Mr DineshchandSurana and two of their brothers in 1991.

SIL has two manufacturing units one each at Gumidipoonidi,Chennai and Raichur, Karnataka. As on February 2012, Raichur unithas sponge iron capacity of 1,28,000 tpa, steel melting shop withcapacity of 2,25,000 tpa and Rolling Mill/Wire drawing capacityof 3,00,000 tpa. Gummidipoondi (GPD) unit has rolling millcapacity of 1,08,000 tpa and induction furnace of 30,000 tpa forproduction of ingots.

The rating assigned by CARE is based on the capital deployed bythe partners and the financial strength of the firm at present.The rating may undergo change in case of withdrawal of thecapital or unsecured loans brought in by the partners in additionto the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Tirupati CottonIndustries (TCI) is constrained mainly on account of its smallscale of operations and a weak financial risk profilecharacterized by highly leveraged capital structure, thinprofitability margin and weak debt coverage indicators. Therating is further constrained on account of its presence in thehighly competitive and fragmented cotton ginning business withlimited value addition, volatility associated with raw material(cotton) prices, exposure to changes in the government policy forcotton and constitution of the entity as a partnership firm.

The rating, however, favorably takes into account the wideexperience of the partners in the cotton ginning business andproximity to cotton-producing region of Gujarat.

Bhavnagar (Gujarat) based Tirupati Cotton Industries (TCI) wasinitially started as a proprietorship firm which was convertedinto a partnership firm in October 2009. TCI currently has fivepartners of the Chavda family with unequal profit and losssharing agreement among them. The firm is engaged in cottonginning & pressing activities with an installed capacity of 6,000Metric Tonnes Per Annum (MTPA) for cotton bales as on March 31,2011 at its sole manufacturing facility located at Gadhada inBhavnagar district (Gujarat).

As against a net profit of INR0.01 crore on a total income ofINR6.36 crore in FY10 (refers to the period April 1 to March 31),TCI earned a PAT of INR0.01 crore on a total operating income ofINR14.72 crore during FY11. As per the provisional results, thefirm has achieved a total income of INR29.50 crore during FY12.

The rating assigned by CARE is based on the capital deployed bythe partners and the financial strength of VSI at present. Therating may undergo a change in case of withdrawal of capital orof the unsecured loans brought in by the partners in addition tochanges in the financial performance and other relevant factors.

The ratings are primarily constrained by the small scale ofoperations of VSI coupled with raw material price fluctuationrisk and the below-average financial risk profile of the firmunderpinned by working capital intensive nature of businessoperations. The ratings are further constrained due to presenceof the firm in the highly competitive menthol industry.

The above constraints are partially offset by the businessexperience of the partners, moderate overall gearing and thefavourable long-term industry prospects on the back of stabledemand for menthol and its allied products.

Going forward VSI's ability to increase its scale of operationswhile maintaining its profitability margins would be the keyrating sensitivity.

VSI's manufacturing plant is located at Bari Brahmana, Jammu &Kashmir (J&K) and has an aggregate installed capacity of 3,690Metric Tonnes Per Annum (MTPA) of menthol flakes, crystalsand other allied products.

VSI reported a total operating income of INR18.91 cr with aPBILDT and PAT of INR7.83 cr and INR6.55 cr respectively duringthe year ended March 31, 2011. Furthermore, as per theprovisional results for FY12 (refers to the period April 1 toMarch 31), VSI reported a total operating income of INR18.05crwith a PAT of INR1.47cr.

"We also raised the issue rating on the company's guaranteedsenior unsecured notes to 'BB+' from 'BB'. At the same time, weraised our long-term ASEAN regional scale rating on Indosat to'axBBB+' from 'axBBB-'. We removed all the ratings fromCreditWatch, where they had been placed with positiveimplications on Feb. 10, 2012," S&P said.

"We raised the rating because we expect Indosat to maintain itsimproved financial performance over the next two to three years,"said Standard & Poor's credit analyst Mehul Sukkawala.

"We also believe the company is likely to maintain "adequate"liquidity, as our criteria define the term, over the next 24months. We now assess Indosat's financial risk profile as"significant". We expect the company to maintain its improvedfinancial metrics with the ratios of debt to EBITDA of about 2.5xand funds from operations to total debt of about 30% for the nexttwo years. These ratios strengthened from 3x and 23%,respectively, in 2009, supported by the improvement in thecompany's operating performance. We expect Indosat to generatepositive free operating cash flow (FOCF) of at least Indonesianrupiah 1.2 trillion annually over the next two years. Indosat'sissuance of local currency bonds, the expected proceeds from a soon-to-be completed sale of its towers, and positive FOCF havebolstered the company's liquidity. We continue to assessIndosat's business risk profile as "fair," said Mr. Sukkawala.

This reflects the company's favorable market position, revenuediversity, stable industry conditions, and moderate competition.Indosat's focus on the data business will keep its operatingperformance stable over the next two years, in our opinion.

"Our rating on Indosat continues to factor in support from parentQatar Telecom (Qtel) Q.S.C. (Qtel; A/Stable/A-1). We believeIndosat has a strategic relationship with Qtel due to a crossdefault clause in Qtel's bank loans and bond documents withrespect to Indosat, and because Indosat is the largest contributor of Qtel's revenue and EBITDA. We believe Indosat has"adequate" liquidity, as defined in our criteria. The company'ssources of liquidity are likely to cover its uses of liquidity bymore than 1.2x in the next 12 months. In addition, Indosat has anadequate cushion in its covenants to absorb a more than 20%decline in EBITDA," said Mr. Sukkawala.

"The stable outlook reflects our expectation that Indosat'soperating performance will remain stable and that the companywill not significantly increase its capital expenditure orshareholders distribution," said Mr. Sukkawala.

"We could raise the rating if we expect Indosat to boost its cashflow adequacy measures by improving operating performance andusing FOCF to reduce debt. An upgrade trigger could be the ratioof adjusted debt to EBITDA of less than 2x. We could lower therating if Indosat's ratio of adjusted debt to EBITDA is more than3x on a consistent basis because of: (1) a deterioration in Indosat's operating performance weakening its financial metrics;or (2) the company's ratio of capital expenditure to revenueincreasing to about 40% from our estimate of 30%. Indosat'soperating performance could weaken if competition intensifiesfurther or the company faces operating issues," said Mr.Sukkawala

"We may also downgrade Indosat if we expect the potential supportfrom Qtel to decline because of: (1) a significant reduction inthe parent's shareholding in Indosat;(2) the cross defaultclauses in Qtel's loan documents being removed or amended; or(3) Indosat ceasing to be one of Qtel's largest operations," saidMr. Sukkawala.

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CHONGRYON: High Court Approves Seizure of Headquarters------------------------------------------------------The Japan Times Online reports that the Supreme Court hasauthorized the seizure of North Korea's de facto embassy to payoff debts.

The top court upheld previous rulings that the government debt-collection body can auction off the headquarters of Chongryon,the General Association of Korean Residents in Japan, whichrepresents Pyongyang's interests in the absence of bilateraldiplomatic ties, the report relates.

According to the report, Resolution and Collection Corp. wasdemanding repayment of JPY62.7 billion from Chongryon and seekingto impound its property as collateral, including the Tokyoheadquarters.

The Japan Times relates that the headquarters has been registeredunder a third party's name, but the top court ruled the buildingis in practice controlled by Chongryon and should be consideredits property.

"It is very regrettable," the report quotes a spokesman for theNorth Korean organization as saying. "We strongly hope that theissue will be resolved through dialogue."

The Japan Times, citing Jiji Press, says that with the ruling,the headquarters, in a central Tokyo business district, can beseized for auction any time if RCC applies for the seizure and acourt approves its application. But it may take several monthsbefore a buyer is selected and any transaction is completed, Jijiadded.

The Japan Times notes that hundreds of thousands of ethnicKoreans live in Japan, mostly a legacy of those who immigrated orwere forced to move here during Japan's 1910-1945 colonial ruleof the Korean Peninsula.

About 10 percent are believed to be affiliated with Chongryon,which claims its community is persecuted by authorities andharassed by rightwing activists, the report adds.

This withdrawal does not reflect any change in thecreditworthiness of these entities.

The principal methodologies used in this rating were Moody's BankFinancial Strength Ratings: Global Methodology published onSeptember 30, 2010, Incorporation of Joint-Default Analysis intoMoody's Bank Ratings: Global Methodology published on April 9,2012, and Moody's Guidelines for Rating Bank Hybrid Securitiesand Subordinated Debt published on September 30, 2010.

Sanko commenced proceedings under the Corporate ReorganizationAct of Japan before the Tokyo District Court, Civil DepartmentNo. 8 amid declining demand and creditor actions.

Sanko is asking the Manhattan judge to recognize the Japaneseproceeding as a "foreign main proceeding" under Section 1517 ofthe Bankruptcy Code.

Based out of Tokyo, the company is mainly engaged in the marinetransportation business concentrating on international routes andother incidental businesses and is specialized in the trampshipping business among the international route marinetransportation business.

Prior to 2008, the Sanko Group actively sought to expand itsbusiness in anticipation of an increase in demand in thetransportation market, especially in developing countries.

However, since the beginning of the ongoing global recession in2008, and especially over the past 18 to 24 months, the demandfor these services has sharply declined. Coupled with aworldwide glut of shipping capacity and the high costs ofmaintaining its fleet, this has negatively impacted Sanko'sbusiness and resulted in a drastic deterioration inprofitability. The company's latest financial statementsrecorded a consolidated cumulative operatingloss of JPY26.9 billion in the financial year of 2011.

Over the course of the past few months, Sanko has been workingwith its creditors to develop and finalize a rehabilitation planin an attempt to restructure its liabilities outside of a formalcourt process. This has proven to be no small task given theworldwide nature of Sanko's operations and the sheer number ofjurisdictions in which its creditors can be found. However, theMay 9, 2012 arrest of one of Sanko's vessels in Baltimore,Maryland, as well as the June 14, 2012 commencement of lawsuitsagainst the company in Florida, demonstrated the precarious stateof Sanko's position and highlighted the risk that the SankGroup could face irreparable harm to its operations at any giventime in the absence of an injunction or stay. Absent formalinsolvency and bankruptcy proceedings, Sanko risks piecemealdismemberment from the actions of creditors commencing litigationagainst the company or arresting its assets.

In order to provide Sanko with the protection needed toreorganize its financial affairs, a petition commencing acorporate reorganization under the JCRA was filed on July 2,2012. During the pendency of the Japanese Proceeding and underthe supervision of the Tokyo Court, Sanko intends to continuediscussions with creditors and ultimately hopes to seek theapproval and confirmation of a global debt restructuring plan.The company hopes thereby to achieve a substantial de-leveragingof its balance sheets and a return to profitability.

In aid of such efforts, Hisashi Asafuji, as foreignrepresentative, seeks, among other things, recognition of theJapanese Proceeding as a "foreign main proceeding," to stayexecution against assets of Sanko within the territorialjurisdiction of the United States, and, both on a provisionalbasis and upon recognition, to apply section 362 of theBankruptcy Code in this chapter 15 case to protect Sanko and itsassets in the United States.

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BLUE STAR: Receives Conditional Takeover Offer----------------------------------------------Blue Star Group, with the support of its major shareholder, saidit has been conducting a review of the group's operations,focusing on a potential sale of all, or parts, of the business.In connection with this review, the Group has entered into anagreement with its senior lenders to maintain their supportduring this process.

The group told the NZX that it has received an unsolicitedconditional proposal to acquire all of the business. "Forconfidentiality reasons the terms of this offer cannot bedisclosed but it does reflect the well-publicized difficulttrading and economic conditions affecting the print industry,"Blue Star said.

The company's board also said it has received unsolicitedapproaches to acquire certain divisions or business units withinthe Group.

Blue Star said, "There is no guarantee that any offer or approachwill complete or, if it does, what value would accrue to thevarious stakeholders in the Group."

The Group said it expects to enter into a conditional agreementto sell its Rapid Labels division in the coming days.

"As noted in the quarterly report on May 25, 2012, tradingconditions remain extremely difficult with continued covenantcompliance reliant upon market conditions and the successfulimplementation of operational initiatives.

"In light of the process, the Board is unsure what value, if any,will attach to the Group's NZDX listed bonds (code BLUFC).However, the Board wishes to reassure staff, customers andsuppliers that the directors intend to continue the business asnormal, subject to the continued support of the senior lenders,"Blue Star said.

As reported in the Troubled Company Reporter-Asia Pacific onJune 29, 2012, NBR Online said troubled print group Blue StarGroup could be headed for administration, according to anAustralian media report. The Australian Financial Review saidrepresentatives from Blue Star and its owner, Champ PrivateEquity, are in serious talks with the company's banks. Appointingadministrators was one option understood as being considered, thepaper, as cited by NBR, said. According to NBR, Blue Starescaped receivership last August when its mainly Kiwi retailbondholders voted in favor of a controversial funding package andrestructure.

LAKES RESORT: Liquidation Ends With Zero Payout-----------------------------------------------Businessdesk reports that liquidators of Pauanui LakesProperties, one of a group of related companies that had beendeveloping the Lakes Resort at Pauanui, have completed theirwork, leaving some NZ$29.5 million owed to 36 creditors,according to their final report.

BusinessDesk recalls that the company was placed in liquidationin May 2009 after failing to make any sales in the previous twoyears, leaving it unable to service mortgages of sections in theresort that were falling in value.

At that time, Pauanui Lakes had sold 69 bare lots, leaving 54with a June 2008 valuation of $19.7 million, 12 condominium siteswith a 2005 valuation of $5.2 million and 17 villa sites with a2005 valuation of $1.95 million, BusinessDesk relates citing thefirst report from liquidators Cliff Parsons and Katherine Kenealyof Hamilton-based Indepth Forensic.

In their final report, BusinessDesk notes, the liquidatorsreported zero realisations or distributions.

Located in Pauanui, New Zealand, Lakes Resort Pauanui propertiesand companies are all owned by Investment Holdings (Pauanui),which in turn is co-owned by Trevor Toohill, Richard Herbert andGrant McDougall.

* NEW ZEALAND: Well-Run Retailers Starting to Fall Over-------------------------------------------------------Susan Edmunds at nzherald.co.nz reports that well-run New Zealandbusinesses that survived the recession are starting to fall overas the economic lift they were hanging on for fails to eventuate.

The report says almost twice as many businesses went intoliquidation last month compared to May the year before.

According to nzherald.co.nz, Auckland Chamber of Commerce chiefexecutive Michael Barnett said there were signs of more troubleto come.

Banco Batangan is a two-unit bank with Head Office located atJ.P. Rizal St., Poblacion, Taysan, Batangas. Its lone branch isin Lipa City. Latest available records show that as of Dec. 31,2011, the Bank had 2,411 accounts with total deposit liabilitiesof PHP114.47 million. According to the latest General InformationSheet filed by Banco Batangan with the Securities and ExchangeCommission, the bank is majority owned by Catalina Aida M.Mendoza (20%), Ramelo M. Mendoza (16.43%), Gemeliano L. Pitogo(16.43%), and Leonardo M. Rivera, Jr. (16.43%). Its Chairman andPresident is Ramelo M. Mendoza.

In a statement, PDIC said that upon takeover, all bank recordsshall be gathered, verified and validated. The state depositinsurer assured depositors that all valid deposits shall be paidup to the maximum deposit insurance coverage of PHP500,000.

Depositors with valid account balances of PHP10,000 and below,who have no outstanding obligations with Banco Batangan and whohave complete and updated addresses with the bank, need not filedeposit insurance claims. PDIC targets to start mailing paymentsto these depositors to their addresses recorded in the bank byearly August 2012.

Depositors may update their addresses with PDIC representativesat the bank premises or during the Depositors Forum using theDepositor Update Forms (DUFs) to be furnished by PDICrepresentatives. Duly accomplished DUFs should be submitted toPDIC representatives accompanied by a photo-bearing ID of thedepositor with his signature. Depositors may update theiraddresses until July 5, 2012.

Depositors whose accounts have balances of more than PHP10,000and those who have outstanding obligations regardless of theamount of their balances or who have failed to update theiraddresses should file their deposit insurance claims. Theinclusive dates and schedule of the claims settlement operationsfor these accounts will be announced mid-August 2012 throughnotices to be posted in the bank premises and other public placesas well as through the PDIC website, http://www.pdic.gov.ph/

* PHILIPPINES: PDIC Seeks Removal of 90-Day Receivership Period---------------------------------------------------------------Lee c. Chipongian at Manila Standard reports that the PhilippineDeposit Insurance Corp. is insisting on the removal of the 90-dayreceivership period in its proposed Closed Bank Liquidation Act(CBLA) which would effectively cancel the placing of expiredbanks under a technical receivership and proceed directly toasset disposition.

The Standard says under existing charter and law of both the PDICand the Bangko Sentral ng Pilipinas (BSP), banks threatened bybankruptcy are placed under receivership with the PDIC tobasically, avoid liquidation. However since 2010, the BSP andPDIC had been working on the cancellation of the 90-dayreceivership mandate. The report relates that the debatecentered on the issue that the BSP's Prompt Corrective Action(PCA) framework has already processed problematic banks and mosthave already undergone rehabilitation which failed, hence theclosures.

"The banks' rehabilitation should have happened already (withPCA)," the Standard quotes PDIC President Valentin A. Araneta assaying. "So what's going to happen (with CBLA) is more clout forthe regulator to force action before closure and this serveseverybody the best. (It would mean) a smooth transition and it'snot destructive to depositors, especially if you have the bridgebank facility . . .I t will be as if nothing happened."

"It's better for depositors to remove the 90-day receivership,"Mr. Araneta, as cited by the Standard, added.

According to the Standard, this policy change is one of theimportant features of CBLA, which has yet to take off in theLower House and the Senate. Aside from the removal of the 90-dayreceivership period, the proposed bill is also pushing for thebridge banking as another form of liquidation and increasedauthority for PDIC in the takeover, liquidation and "winding up"of closed banks, the report adds.

=================S I N G A P O R E=================

RILEY PATERSON: Creditors' Proofs of Debt Due July 25-----------------------------------------------------Creditors of Riley Paterson Holdings Pte Ltd, which is involuntary liquidation, are required to file their proofs of debtby July 25, 2012, to be included in the company's dividenddistribution.

RILEY PATERSON INVESTMENT: Creditors' Proofs of Debt Due July 25----------------------------------------------------------------Creditors of Riley Paterson Investment Management Pte Ltd, whichis in voluntary liquidation, are required to file their proofs ofdebt by July 25, 2012, to be included in the company's dividenddistribution.

SINGAPORE DERRICK: Creditors' Proofs of Debt Due July 13--------------------------------------------------------Creditors of Singapore Derrick Pte Ltd are required to file theirproofs of debt by July 13, 2012, to be included in the company'sdividend distribution.

SOUTH ASIA: Creditors' Meetings Set for July 11-----------------------------------------------South Asia Textile Industries Pte Ltd, which is in liquidation,will hold a meeting for its creditors on July 11, 2012, at 10:00a.m., at 8 Wilkie Road #03-08 Wilkie Edge, in Singapore 228095.

Agenda of the meeting includes:

a. to update on the status of liquidation;

b. to consider and if thought fit, to appoint a committee of nspection; and

YON-YUE INTERNATIONAL: Creditors' Proofs of Debt Due July 20------------------------------------------------------------Creditors of Yon-Yue International Pte Ltd, which is in members'voluntary liquidation, are required to file their proofs of debtby July 20, 2012, to be included in the company's dividenddistribution.

Tuesday's edition of the TCR-AP delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-AP editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The TuesdayBond Pricing table is compiled on the Friday prior topublication. Prices reported are not intended to reflect actualtrades. Prices for actual trades are probably different. Ourobjective is to share information, not make markets in publiclytraded securities. Nothing in the TCR-AP constitutes an offeror solicitation to buy or sell any security of any kind. It islikely that some entity affiliated with a TCR-AP editor holdssome position in the issuers' public debt and equity securitiesabout which we report.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR-AP. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historicalcost net of depreciation may understate the true value of afirm's assets. A company may establish reserves on its balancesheet for liabilities that may never materialize. The prices atwhich equity securities trade in public market are determined bymore than a balance sheet solvency test.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding,electronic re-mailing and photocopying) is strictly prohibitedwithout prior written permission of the publishers.Information contained herein is obtained from sources believedto be reliable, but is not guaranteed.

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